Minnesota-based company 3M has announced updates to its pension plans for non-union U.S. employees starting in 2028.
According to a statement put out by the company, pension-eligible employees will continue to accrue benefits under the pension plans until the freeze date on Dec. 31, 2028.
The decision applies to both 3M and the future, independent health care company’s U.S. pension plans.
Former employees with vested pension benefits, 3M or 3M Health Care retirees and anyone currently receiving pension annuity payments are not impacted.
The company states that the move from a pension plan to a 401(k) retirement plan has been in the works for many years. In 2009, the company closed Portfolio II of the U.S. pension plan to new hires and rehires.
“This is an important decision for 3M as it helps to set up both companies for future success. This was also a difficult decision because it impacts employees across the United States. To help those impacted, we are providing five years of advance notice to ensure our employees can plan alternative strategies to meet their post-retirement income needs,” said 3M Chairman and CEO Mike Roman.
Read More: 3M to freeze pensions for non-union employees in 2028